Ayala may rejoin MPIC in LRT 1 Ext bidding

MANILA, Philippines - Listed conglomerate Ayala Corp. has not totally closed the doors in rejoining Metro Pacific Investments Corp. (MPIC) in the bidding for the P60 billion Light Rail Transit line 1 (LRT1) extension project.

Eric Francia, managing director of Ayala Corp., said in a text message that the listed firm is awaiting the decision of the Department of Transportation and Communications (DOTC) on how to go about with the bidding process. “We are awaiting government decision on the LRT1 bid,” Francia said.

Francia earlier said the joint venture entered between Ayala and MPIC last April is still on as the conglomerate’s decision only covers the LRT1 project and not future light rail projects.

“This decision is only for this specific LRT1 bid. We will continue to pursue future rail projects, and our framework agreement with MPIC is still live,” Francia said earlier.

Last April, the Ayala Group and MPIC signed a memorandum of agreement forming an exclusive strategic partnership to jointly pursue and develop light rail projects to make Metro Manila’s public transport system at par with Japan and Hong Kong.

Under the agreement, Ayala and MPIC would each own half of the light rail projects and the real estate development component that comes with projects under the government’s public-private partnership (PPP) program.

DOTC Secretary Joseph Emilio Abaya earlier said the joint bids and awards committee (BAC) of the DOTC and the Light Rail Transit Authority (LRTA) is looking at extending the bidding process to address the concerns of the prequalified bidders that withdrew their participation.

“The BAC is looking at the possibility of extending the bidding process and reevaluating the existing terms to further address the commercial issues raised by the pre-qualified bidders,” Abaya said.